ERCST’s feedback to the European Commission’s Draft Implementing Act on CBAM Article 9
Discover our latest publication: ERCST’s feedback to the European Commission’s Draft Implementing Act on CBAM Article 9, which sets out the rules for deducting carbon prices already paid in third countries.
Key ERCST observations:
- The proposal limits recognition to genuine, sector-wide compliance mechanisms — ruling out export-only arrangements and ad-hoc schemes designed solely to reduce CBAM exposure.
- A 5% coverage tolerance is a practical step that accommodates real-world differences between third-country carbon pricing systems and CBAM.
- Expectations around Article 6 credit demand appear significantly overstated — market projections of €3bn+ and 17 Mt/year do not hold up against the conditions the draft actually imposes.
- Transparency and integrity risks in Article 6 credit pricing — particularly in related-party transactions — are not adequately addressed by the current evidence requirements.
- The rebate carve-out needs stronger guardrails — the four conditions in Article 8(2) leave several borderline cases between genuine decarbonization support and disguised compensation unresolved.
- The overall certification and accreditation architecture is disproportionate to the deductions most producers will realistically claim — bilateral agreements under Article 2(12) of the CBAM Regulation may offer a more efficient alternative.
